Royal Mail's insult to post users: 'You're not our customers'

Insult: Royal Mail chairman Allan Leighton said domestic post users are 'not our customers'
13 April 2012

The Royal Mail chairman has provoked fury by declaring "the people we deliver to are not our customers".

The grossly 'insulting' remarks come at a time of serious concern over the standard of Royal Mail's service.

The 53-year-old businessman insisted that Britain's big businesses, not the country's 27 million home addresses, are his real customers.

His remarks were seized upon and branded insulting, unnecessary and unfair.

More here...

• Thousands of Post Offices could be forced to close

Mr Leighton's comments, made in an interview with the Spectator magazine, come at a time of serious concern about the standard of Royal Mail's service.

Since he became chairman in 2002, the firm is making money and beating performance targets - but many deeply unpopular changes have been made.

First class post does not arrive before lunch for millions of people; second post has been scrapped; and final collection can be as early as 6.15am.

The Conservative Shadow Post Offices Minister led the attack yesterday on Mr Leighton, one of Britain's most well-known and outspoken businessmen.

Charles Hendry said: "Millions of people will find his words insulting as we all know how immensely important it is to receive a birthday card or a letter from a loved one in the post.

"Any business that forgets its customers loses its customers.

"Allan Leighton must not forget that these people who he has insulted are the people who pay his salary."

In the interview, he went to explain his remarks by arguing that the average person writes only four letters a year.

But The Greeting Card Association pointed out that every adult in Britain sends about 55 cards every year, more than any other country in the whole world. About half are sent through the post.

Andy Frewin, from the consumer watchdog Postwatch, said Royal Mail has a unique obligation to provide a universal service.

This means they must deliver to every home in the country from the Cornish coast to the highlands of Scotland every working day.

He said: "We are all customers of Royal Mail. It is not sensible or correct to suggest otherwise.

"Everyone uses the Royal Mail to send cards, letters and parcels. Everyone is a paying customer."

To make matters worse, the Royal Mail chairman was also quoted as saying that junk mail will rise, not fall, under his reign. He told the interviewer Judi Bevan: "I want to deliver more."

The amount of junk mail pouring through letter boxes enrages millions of people who think it is a waste of paper.

But Royal Mail is planning to scrap the three items per household per week limit which currently exists, depending on negotiations with its union.

Critics fear this could lead to a deluge of junk mail although the firm insists that its rival will deliver the 'unaddressed mail', if it does not.

His remarks were reminiscent of the legendary gaffe made by jewellery magnet Gerald Ratner in a speech in 1991.

He said it was only possible to sell products so cheaply in his high-street chain, such as a decanter, because they were "total crap."

Mr Leighton's comments leaked out on the day of warnings about the future of one of the most popular parts of the Royal Mail - its 14,326 Post Offices.

Postal regular Postcomm said that thousands could close, largely due to the Government's decision to slash business such as paying pensions and renewing BBC licences.

Millions of customers, particularly the elderly, will be devastated by closures which will hit country villages where the only shop is a Post Office.

Yesterday the Royal Mail fought to defend its chairman, who has worked previously for firms such as Asda, Lastminute.com and Mars.

A spokesman said: "Everyone who pays Royal Mail to deliver a letter is our customer whether its consumer mail or business mail.

"Every single letter is important to us."

It delivers about 84 million items every day to Britain's 27 million addresses.

Royal Mail is losing huge amounts of money on 'stamped mail', roughly 6p on every First and Second class letter which is sent.

'Stamped mail' - rather than profitable 'business mail' - lost £240 million, according to the firm's latest results. Overall, its annual profits jumped a massive 86 per cent to £312 million pre-tax.

Of all the letters which it handles every day, about 93 per cent is posted by business customers, mostly the big banks and utility companies.

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